CO Has The Lowest Child Poverty Rate In The Country

New research shows how the state’s refundable tax credits are helping families meet basic needs and build financial resilience

One year after launch, Colorado’s Family Affordability Tax Credit (FATC) is delivering on its promise to reduce child poverty and strengthen family economic stability, according to new independent research. Colorado’s child poverty rate is 7.3%, below New Hampshire which formerly had the lowest child poverty rate according to data from the U.S. Census Bureau. 

An evaluation led by Appalachian State University and Washington University in St. Louis finds that the Family Affordability Tax Credit is associated with approximately 20% reduction in child poverty when considered on its own. When combined with Colorado’s Child Tax Credit and Earned Income Tax Credit, child poverty drops by nearly 40%.

The Family Affordability Tax Credit, passed by the state legislature in 2024, allowed families to claim the credit when they filed their taxes in 2025. The credit provides a refundable, per-child credit to families with children under 17, including families with low to moderate incomes. Nearly 44% of Colorado families with children are eligible — making the credit one of the most expansive state-level child tax credits in the country.

Families use the credit to stabilize their households

“I got caught up on bills and used the rest for kids’ clothing and bought groceries.”
– Bradley, a dad from Grand Junction, Colo. 

The average family received $7,000 from FATC in 2025. Survey and interview data show families are using the credit deliberately and responsibly. The most common uses include housing, utilities, food, clothing and children’s expenses such as school supplies, uniforms and extracurricular activities. Many families reported using the credit to catch up on overdue bills, prevent housing instability, and address urgent repairs.

According to the recently published study, only 12% of the 330,000+ families who claimed FATC also received both the EITC and CTC, demonstrating that FATC credit is reaching families who would not otherwise receive this direct and necessary support. 

Addressing affordability effectively 

The evaluation is the first year of a three-year, mixed-methods study conducted in partnership with Gary Community Ventures, the Colorado Children’s Campaign, Child Trends, and a coalition of community stakeholders. Future reports will examine longer-term impacts and outcomes over time.

“This is clear evidence that refundable child tax credits work. The Family Affordability Tax Credit is helping families stay housed, keep food on the table, and invest in their children — exactly what it was designed to do.”
– Zach Martinez, Director of Policy, Gary Advocacy

As policymakers consider the future of the credit, the findings point to a simple conclusion: FATC stands out as a proven, cost-effective investment that directly addresses affordability for broad swaths of Coloradans today while preventing higher, long-term costs associated with child poverty.

FATC Supporters

Passing House Bill 24-1311, which created Family Affordability Tax Credit, required a shared vision, persistence and deep collaboration across organizations, advocates and policymakers.

The effort to pass HB24-1311 was led by bill sponsors Former Rep. Chris deGruy Kennedy, Rep. Jenny Willford, Former Sen. Faith Winters and Sen. President James Coleman.

Gary Advocacy is proud to have been part of a core group of organizations, including the Bell Policy Center, Colorado Children’s Campaign, Colorado Fiscal Institute and The Women’s Foundation of Colorado, that championed this policy. 

Additionally, each of these organizations recognized FATC’s potential and publicly supported the measure.